Silver Bull Resources, Inc. (TSX: SVB; OTCQB: SVBL)
(“
Silver Bull” or the “
Company”)
is pleased to announce its intention to complete a private
placement (the “
Private
Placement”) of up to 3,942,590 units (the
“
Units”) of the Company at a price of US$0.47 per
Unit for gross proceeds of approximately US$1,853,000. Each Unit
will consist of one share of common stock in the Company (a
“
Common Share”) and one half of one
non-transferable Common Share purchase warrant (each whole warrant,
a “
Warrant”). Each Warrant entitles the holder to
acquire one Common Share at a price of US$0.59 per Common Share
until the fifth anniversary of closing of the Private Placement.
Directors and management of the Company have
committed approximately US$545,000 of the Private Placement.
Additionally, clients and affiliates of the Sprott Group of
Companies have committed to participate for a minimum of
US$500,000.
The Private Placement is expected to close on or
before November 20, 2020, subject to receipt of the necessary
approvals, including approval of the Toronto Stock Exchange
(“TSX”).
The Company has agreed to pay a cash commission
of up to 4% of the gross proceeds raised by finders in the Private
Placement, and the net proceeds will be used by Silver Bull for
general working capital purposes.
Tim Barry, Silver Bull President and CEO,
stated, “As announced by the Company on August 17, 2020, the
Company entered into an option agreement to acquire the Beskauga
Copper-Gold Project from Copperbelt AG
(“Copperbelt”). After closing the Private
Placement, the Company expects to complete remaining due diligence
to finalize the agreement with Copperbelt, and then proceed with an
initial geophysics program at site.”
Furthermore, the Company is expecting a final
ruling in the lawsuit originally filed in 2014 by the group Mineros
Norteños, which has appealed three prior rulings of the court. The
last court ruling in favor of the Company was delivered in March
2020, but unfortunately due to the rapid spread of COVID-19 in
Mexico, the court system in Mexico has been shut down until very
recently, which has caused a significant delay in potentially
settling this case. We strongly believe the lawsuit filed by
Mineros Norteños is without merit and is largely being driven by
the group’s lawyer, who stands to gain a considerable contingency
payment if successful, and a small radical group of approximately
10 Mineros Norteños members who do not accurately reflect the
sentiment of the much larger Mineros Norteños group. According to
our employees who live in the community, the illegal blockade on
the Sierra Mojada Project is manned by this small group, and it is
an attempt to try and force the Company into making a settlement on
a lawsuit that in our view is frivolous. We remain committed to
good faith dialogue with the Mineros Norteños group, many of whom
have worked for Silver Bull, to find a solution, but to date any
proposal put forward by Silver Bull has been rejected, and any
counter proposals from Mineros Norteños have been completely
unrealistic.
The Sierra Mojada Project remains under an
option with South32 International Investment Holdings Pty Ltd and
is currently under a force majeure due to the illegal blockade. As
soon as we are able access the project, we expect to recommence the
drilling program that was halted.
All securities issued and issuable pursuant to
the Private Placement are subject to a hold period under applicable
Canadian securities laws, which will expire four months plus one
day from the date of closing of the Private Placement, and U.S.
securities laws, which will expire six months from the date of the
closing of the Private Placement.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States of America. The securities have not been and
will not be registered under the United States Securities Act of
1933 (the “1933 Act”) or any state securities laws and may not be
offered or sold within the United States unless registered under
the 1933 Act and applicable state securities laws, or an exemption
from such registration is available.
About Silver Bull: Silver Bull
is a Vancouver-based mineral exploration company whose shares are
listed on the TSX and trade on the OTCQB in the United States.
Silver Bull recently signed an Option Agreement to acquire the
Beskauga Copper-Gold Project, located in North Eastern Kazakhstan.
This agreement is subject to on the ground due diligence, which
will occur once safe travel to the region is allowed due to current
COVID-19 related restrictions. In addition, Silver Bull owns the
Sierra Mojada Project which is located 150 kilometers north of the
city of Torreon in Coahuila, Mexico, and is highly prospective for
silver and zinc. Sierra Mojada is currently under a joint venture
option with South32 International Investment Holdings Pty Ltd.
On behalf of the Board of Directors “Tim
Barry”
Tim Barry, CPAusIMM Chief
Executive Officer, President and Director
INVESTOR RELATIONS: +1 604 687
5800 info@silverbullresources.com
Cautionary note regarding forward
looking statements: Certain statements in this news
release are “forward-looking” within the meaning of applicable
securities legislation. Forward-looking statements can generally be
identified by the use of forward-looking terminology such as “may”,
“will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”,
“continue”, “plans” or similar terminology. Forward-looking
statements include, but are not limited to, statements relating to
the anticipated closing of the Private Placement, the receipt of
approval of the TSX, the expected use of proceeds from the Private
Placement, statements regarding the merits of and the expected
ruling in the lawsuit filed by Mineros Norteños, and the expected
recommencement of the drilling program at the Sierra Mojada
Project. Forward-looking statements are necessarily based upon the
current belief, opinions and expectations of management that, while
considered reasonable by the Company, are inherently subject to
significant business, economic, competitive, political and social
uncertainties and other contingencies. Many factors could cause the
Company’s actual results to differ materially from those expressed
or implied in the forward-looking statements. These factors
include, among others, market prices, metal prices, availability of
capital and financing, general economic, market or business
conditions, as well as other risk factors set out under the heading
“Risk Factors” in the Annual Report on Form 10-K for the year
ended October 31, 2019, which is available on SEDAR at
www.sedar.com. Investors are cautioned not to put undue reliance on
forward-looking statements due to the inherent uncertainty
therein.
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